Wind power auction sees record bidding

4 de September de 2013 18:15

A total of 655 projects for Northeast and South Brazil are competing in a tender due on August 23rd.

Rio de Janeiro – A total of 655 projects for wind energy generation in new locations throughout Brazil are competing in the auction for wind energy contracts, scheduled for August 23rd. The number of bids is an all-time high in Brazil and worldwide for this particular power source, according to information released this Tuesday by Brazil’s Energy Power Company (EPE, in the Portuguese acronym), a state-owned company linked to the Ministry of Mines and Energy.

Bidding for the 2013 Reserve Auction ended this Tuesday. According to EPE, the bidding projects cover nine states of Brazil (Bahia, Ceará, Maranhão, Paraíba, Pernambuco, Piauí, Rio Grande do Norte, Rio Grande do Sul, and Santa Catarina), plus all states in the Northeast and the South of the country. The total installed capacity is 16,040 megawatts (MW).

The 2013 Reserve Auction will deal solely with wind power, and the bidders who offer the lowest price for power will win the contracts, with supply due to begin on September 1st, covering a 20-year period. EPE notes that the auction will feature a new methodology for calculating the guaranteed power output, and the bid’s price will serve as a classification criterion.

“The rule that conditions wind farm contracts to the guarantee of a power grid connection rules out the risk of facilities’ being completed but unable to put out the actual power,” said EPE chairman Maurício Tolmasquim in a press release.

He explained that the auction will lead to an increase in reliability of wind power for the Brazilian power industry, now that the rule that regulates output calculations for each wind farm has been made stricter.

“In this year’s reserve auction, the actual output will be required to be at least 90% of the output in the contract. In other words, there will only be a 10% chance of a wind farm putting out less power than the amount sold in the auction,” said Tolmasquim.

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